Raw Greed’s strategy for the remainder of 2006

Posted on May 26, 2006 , filed under Stocks | Print This Post

My Raw Greed portfolio is trading near the beginning of 2006 levels and has seen most of its gains for the year wiped out by the recent decline in the markets. For investors who have held out and control mostly cash positions, I would recommend going 50% in this market and holding 50% as cash. I see some attractively priced technology shares that I believe will rebound in the second half of 2006.

Most notably:

eBay, Inc. (EBAY)
Yahoo! Inc. (YHOO)
Microsoft Corporation (MSFT)
Intel Corporation (INTC)
Dell, Inc. (DELL)
Applied Materials, Inc. (AMAT)
Check Point Software Technologies, Ltd. (CHKP)
Semiconductor Manufacturing International Corporation (SMI)
United Microelectronics Corporation (UMC)

Due to the mounting uncertainty in the market and concerns over terrorism I believe gold will continue to be a major safe haven investment. Emerging markets such as India and China are building large reserves of gold. I expect to see gold make even larger moves upward in the second half of 2006. I also expect to see the economies of countries that are heavily involved with commodities continue to improve.

At the moment I would recommend investing in gold mining shares. Gold has corrected in the 5-10% range that I was anticipating. I expect gold to resume its uptrend in the next 1-3 months. I believe we might not see another attractive chance to purchase shares of gold mining companies in the short-term. My top two picks in gold mining stocks are Yamana Gold, Inc. (AUY) and Tanzanian Royalty Exploration Corp. (TRE).

Add this post to your favorite social networking site